Utility Week

UTILITY WEEK | 24TH - 30TH MAY 2019 | 23 Operations & Assets A "mismatch of understanding" was how Laura Sandys characterised the approach to customer data by some utilities. Referencing an industry conversa- tion with a director of data strategy, Sandys revealed how they proudly proclaimed that they had 87 per cent of all their customers' postcodes – although this was seemingly where the plan ended. Such insights suggest a sector still "pretty far behind the curve" said Sandys, whether in skills, capabilities, or just basic understanding. Yet there is "great opportunity". "We can leap- frog, we can learn from others." Learning from others is not some- thing utilities have always been great at, even if that is changing, she said. She pointed to how there are currently around six "consumer archetypes" in the energy sector, used to segment 60 million people via 30 million house- holds. Amazon segments those 60 million into an eye-watering 150,000 diˆ erent archetypes. "So do we really understand our customers? Are we really shaping things that are wrapping around their lives? Or are we expecting consumers to become electrical engineers and heating engineers? "As we move into this digital world, where consumers deserve tailored products, and easy-to-access platforms to buy and sell energy, we should be careful that we are actually regulating where risk lies – rather than crushing choice, opportunity and new business models. "The use of data is also going to be very important in terms of balancing the system, regulating it and interact- ing with it. Not so long ago there were probably 50 key players in the whole of the energy industry. We are now a sector of many more players. "Data is going to be the new blood- stream across the sector – but we are also going to have to be really, really clear about how we manage that. As we move, potentially to 150,000 diˆ erent archetypes, we are going to have lots of dispersed consumer propositions. A lot of it will have to be informed by data." But this is not just an energy prob- lem, Sandys said, there are economy- wide, consumer protection issues. The complexity of choices will require greater access to data, and customers will therefore want to have much greater visibility over what they're being sold, how and what the terms and conditions are. Utilities should be able oˆ er a tailored and targeted response, she said, also warning against underesti- mating the importance of connectivity for consumers. "Our energy is going to become more and more con" ated with data, communications, connectivity and other products, so we have to start to understand how that is going to be developed, and also regulated. "It's important that we actually address the right risk, and not say that data is the problem. "Data isn't the problem. It's about what people do with the data that can be the problem. And, yes, there will be scallies, or there will be people who unintentionally mis-sell. And there will be problems about data not receiving its right value. We've got to start this journey and start to explore–it. "As it is an economy-wide issue, we as the energy sector should say we have a very important role to play, but that we are also looking for leadership across the economy to start delivering true value, true control and true ben- e— ts to consumers as we use our data in a much more eˆ ective way." for Hitachi, followed with a view "from the coal face" about getting to grips with the regulation, as well as the NIS Directive (see column, le ). The lively roundtable debate focused on — ve central consumer data themes (see over- leaf) and brought together industry leaders in customer functions from across the sector, including energy retailers, networks, water companies and consumer lobby groups. What came through loud and clear was a consensus of recognition about data's ability to rewrite the rules on good customer experi- ence and engagement if used well – such as oˆ ering seamless processes or helping prior- ity service customers. However, among the many shared positive ideas and stories there were les- sons about the potential pitfalls and chal- lenges ahead, including those around data breaches. Equally, there were calls for some swiœ , relatively straightforward action to clear frus- trating roadblocks. Utilities, we heard, were oœ en thwarted by a lack of joined-up think- ing from policymakers and regulators. A strong message coming through was the potential bene— ts of more collabora- tion among utilities. This talked well to a question posed at the outset by WNS senior vice-president and business development director Ian Bel— eld, who wondered if con- cerns about GDPR and the data risks asso- ciated with it could be eˆ ectively crushing what would otherwise be an opportunity for utilities. Could we deal with customers in a better way if we were able to share more of that data, he asked. Knowing and understanding customers much more will prove invaluable in the data- driven journey ahead. And transparency will be critical to building trust and removing anxiety. In a quote that summed up the essence of the discussion, Sandys described data as being "the new bloodstream of the energy sector". Keeping it " owing, and safely, for both customers and industry is one of the sector's most pressing challenges ahead. In the blood Data will inform future customer service but care is needed, says Laura Sandys. Turn to Data Discussion, overleaf ☛ Brought to you in association with

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